Thousands of people waiting for a decision on their Personal Independence Payment (PIP) claim could be in line for a major financial boost, despite facing what MPs have called "unacceptable" processing delays. A new report highlights that successful claimants may receive a significant lump sum payment, backdated to when they first applied.
Unacceptable Delays and a Potential Silver Lining
A damning report from the influential Public Accounts Committee has slammed the Department for Work and Pensions (DWP) for lengthy waits, with some applicants left in limbo for over a year. The committee revealed that in the 2024 to 2025 period, only 51% of claims were processed within the target of 75 working days, far short of the DWP's own goal of handling three-quarters of cases in that time.
However, there is a crucial financial detail for those enduring these prolonged waits. If a PIP claim is eventually approved, the award is backdated to the date of the initial contact with the DWP, not the date of the decision. This means the longer the delay, the larger the initial back payment could be.
How Backdated PIP Payments Work
The charity Turn2Us has clarified the rules surrounding these payments. "The payment should be backdated to when you first contacted the Department for Work and Pensions to claim PIP," they state. They advise that if this has not happened, claimants should contact the DWP to request a correction.
This backdated amount, which could be a "significant sum," is typically paid as a lump sum in the first payment. In some cases, individuals may be offered a choice between receiving it as a single payment or in instalments. Crucially, for benefits purposes, this backpayment is not treated as income, so it won't affect eligibility for other means-tested support.
It also will not be counted as savings or capital for the first year after it is paid. However, if you opt for instalments that extend beyond a year, the money may start to be considered as savings. The charity notes an important exception: any backpayment exceeding £5,000 will not be classified as savings, even after the first year.
Increased Rates and Substantial Annual Support
The potential value of these backdated payments is set against rising PIP rates. From April, the new weekly rates will be:
- £76.70 for the standard Daily Living element
- £114.60 for the enhanced Daily Living element
- £30.30 for the standard Mobility element
- £80.00 for the enhanced Mobility element
This means a claimant receiving both enhanced elements would get over £10,000 in support annually. Therefore, someone who waited more than a year for a decision, as highlighted in the report, could be entitled to a backdated payment of a similar amount.
The Public Accounts Committee was blunt in its assessment, stating that "the department does not have an adequate plan to improve this in the short term." In response, a DWP spokesperson said: "We always aim to make PIP award decisions as quickly as possible, and the Timms Review is looking at PIP as a whole to make sure it is fit and fair for the future."
